Question 1

Before launching a business, an entrepreneur should register the company with local taxing authorities.

Accepted Answer

A) True 
 B)False

Question 2

All of the following are disadvantages of sole proprietorship except:

Accepted Answer

A)  Limited Skills 
B)  Limited Access to Capital 
C)  No Special Legal Restrictions 
D)  Lack of Continuity for the Business 
A)  Limited Skills 
B)  Limited Access to Capital 
C)  No Special Legal Restrictions 
D)  Lack of Continuity for the Business

Question 3

A skillful and capable entrepreneur who appreciates independence and control of operations would likely select which of the following forms of doing business?

Accepted Answer

A)  S-Corp and LLC. 
B)  Partnership with up to 10 partners. 
C)  C-Corporation. 
D)  Sole proprietorship. 
A)  S-Corp and LLC. 
B)  Partnership with up to 10 partners. 
C)  C-Corporation. 
D)  Sole proprietorship.

Question 4

In choosing a form of ownership, entrepreneurs must remember that there is no single "best" form.

Accepted Answer

A) True 
 B)False

Question 5

A "C" corporation need not have:

Accepted Answer

A)  stockholders 
B)  a board of directors 
C)  external investors. 
D)  officers. 
A)  stockholders 
B)  a board of directors 
C)  external investors. 
D)  officers.

Question 6

A limited liability company is formed by filing a(n) _______________ form with a secretary of state and signing an LLO Operating Agreement.

Accepted Answer

Article of

Question 7

A(n) ________ is a form of business in which a single owner does business himself or herself and requires only a business license to open.

Accepted Answer

The answer of A(n) ________ is a form of business...

Question 8

All of the following are disadvantage of a C-corporation except:

Accepted Answer

A)  Double Taxation 
B)  Cost and Time Involved in the Incorporation Process 
C)  Transferable Ownership 
D)  High Administration Compliance Costs 
A)  Double Taxation 
B)  Cost and Time Involved in the Incorporation Process 
C)  Transferable Ownership 
D)  High Administration Compliance Costs

Question 9

When a corporation is founded, it does not have to accept the regulations and restrictions of the state in which it is incorporated and of each state in which it does business.

Accepted Answer

A) True 
 B)False

Question 10

If you are not a resident of Delaware, you must have an agent who is in the state empowered to accept service in the event the corporation is sued. What is the next step after selecting a local agent?

Accepted Answer

A)  Select the corporate name 
B)  Prepare the Certificate of Incorporation 
C)  Hire employees 
D)  Get a building 
A)  Select the corporate name 
B)  Prepare the Certificate of Incorporation 
C)  Hire employees 
D)  Get a building

Question 11

Which type of stock is the most common/usual?

Accepted Answer

A)  Preferred Stock 
B)  Par Value 
C)  No-Par-Value Stock 
D)  Private Stock 
A)  Preferred Stock 
B)  Par Value 
C)  No-Par-Value Stock 
D)  Private Stock

Question 12

Which of the rows in the following table is the correct combination of characteristics for C-Corps; S-Corps LLCs; and Partnerships?
$\begin{array}{|l|l|l|l|}
\hline \text { Characteristic }&\text { C-Corp } & \text { S-Corp LLC } & \text { Partnership } \
\hline \text { a. Limited liability for all owners }& \text { Yes } & \text { Yes } & \text { Yes } \
\hline \text { b. Owners can participate in management }& \text { No } & \text { No } & \text { No } \
\text { without losing liability protection }\
\hline \text { c. Number of owners }&1 \text { or more } & 1-100 & 1 \text { or more } \
\hline \text { d. Easy to form and maintain without }&\text { Yes } & \text { No } & \text { No } \
\text { extensive records }\
\hline
\end{array}$

Accepted Answer

A)  a 
B)  b 
C)  c 
D)  d 
A)  a 
B)  b 
C)  c 
D)  d

Question 13

When should you establish a relationship with a bank in order to acquire a line of credit in the near term?

Accepted Answer

A)  First 30 days 
B)  Sixty days 
C)  Between 30-60 days 
D)  At the end of the year 
A)  First 30 days 
B)  Sixty days 
C)  Between 30-60 days 
D)  At the end of the year

Question 14

When a corporation is established, its equity is divided among a number of shares of stock that are issued to the investors in proportion to their investment in the corporation.

Accepted Answer

A) True 
 B)False

Question 15

A(n) ________ is a blend of some of the best characteristics of corporations, partnerships, and sole proprietorships.

Accepted Answer

limited li

Question 16

What type of partnership has unlimited liability?

Accepted Answer

A)  Limited 
B)  General 
C)  Complementary 
D)  Personal 
A)  Limited 
B)  General 
C)  Complementary 
D)  Personal

Question 17

Which of the following insurance coverages should be considered, although not required, as soon as you start you company?

Accepted Answer

A)  Fire 
B)  Employee health and life 
C)  Business interruption 
D)  All the above 
A)  Fire 
B)  Employee health and life 
C)  Business interruption 
D)  All the above

Question 18

A disadvantage of an S corporation is unlimited personal liability, very similar to the liability in a sole proprietorship.

Accepted Answer

A) True 
 B)False

Question 19

When should you contact suppliers?

Accepted Answer

A)  First 30 days 
B)  Sixty days 
C)  Between 3-6 months after opening 
D)  At the end of the year 
A)  First 30 days 
B)  Sixty days 
C)  Between 3-6 months after opening 
D)  At the end of the year

Question 20

_________ value is an archaic concept of monetary value that is still applied to each share of stock.

Accepted Answer

The answer of _________ value is an archaic concept of...

Before launching a business, an entrepreneur should register the company with local taxing authorities.

All of the following are disadvantages of sole proprietorship except:

A skillful and capable entrepreneur who appreciates independence and control of operations would likely select which of the following forms of doing business?

In choosing a form of ownership, entrepreneurs must remember that there is no single "best" form.

A "C" corporation need not have:

A limited liability company is formed by filing a(n) _______________ form with a secretary of state and signing an LLO Operating Agreement.

A(n) ________ is a form of business in which a single owner does business himself or herself and requires only a business license to open.

All of the following are disadvantage of a C-corporation except:

When a corporation is founded, it does not have to accept the regulations and restrictions of the state in which it is incorporated and of each state in which it does business.

If you are not a resident of Delaware, you must have an agent who is in the state empowered to accept service in the event the corporation is sued. What is the next step after selecting a local agent?

Which type of stock is the most common/usual?

When should you establish a relationship with a bank in order to acquire a line of credit in the near term?

When a corporation is established, its equity is divided among a number of shares of stock that are issued to the investors in proportion to their investment in the corporation.

A(n) ________ is a blend of some of the best characteristics of corporations, partnerships, and sole proprietorships.

What type of partnership has unlimited liability?

Which of the following insurance coverages should be considered, although not required, as soon as you start you company?

A disadvantage of an S corporation is unlimited personal liability, very similar to the liability in a sole proprietorship.

When should you contact suppliers?

_________ value is an archaic concept of monetary value that is still applied to each share of stock.

Understanding the Entrepreneurial Process

Converting Ideas Into Opportunities

Framing and Testing the Business Model

Engaging Customers, Analyzing Competitors, for Market Entry Strategy

Preparing the Investor Package

Protecting Intellectual Property

Launching and Financing Your Venture

Equity Financing for High Growth

Managing Start-Up Performance/money and People

Pitching the Venture to Investors

Planning Your Exit

Filters

Exam 6: Setting up the Company

Before launching a business, an entrepreneur should register the company with local taxing authorities.

All of the following are disadvantages of sole proprietorship except:

A skillful and capable entrepreneur who appreciates independence and control of operations would likely select which of the following forms of doing business?

In choosing a form of ownership, entrepreneurs must remember that there is no single "best" form.

A "C" corporation need not have:

A limited liability company is formed by filing a(n) _______________ form with a secretary of state and signing an LLO Operating Agreement.

A(n) ________ is a form of business in which a single owner does business himself or herself and requires only a business license to open.

All of the following are disadvantage of a C-corporation except:

When a corporation is founded, it does not have to accept the regulations and restrictions of the state in which it is incorporated and of each state in which it does business.

If you are not a resident of Delaware, you must have an agent who is in the state empowered to accept service in the event the corporation is sued. What is the next step after selecting a local agent?

Which type of stock is the most common/usual?

When should you establish a relationship with a bank in order to acquire a line of credit in the near term?

When a corporation is established, its equity is divided among a number of shares of stock that are issued to the investors in proportion to their investment in the corporation.

A(n) ________ is a blend of some of the best characteristics of corporations, partnerships, and sole proprietorships.

What type of partnership has unlimited liability?

Which of the following insurance coverages should be considered, although not required, as soon as you start you company?

A disadvantage of an S corporation is unlimited personal liability, very similar to the liability in a sole proprietorship.

When should you contact suppliers?

_________ value is an archaic concept of monetary value that is still applied to each share of stock.

Understanding the Entrepreneurial Process

Converting Ideas Into Opportunities

Framing and Testing the Business Model

Engaging Customers, Analyzing Competitors, for Market Entry Strategy

Preparing the Investor Package

Protecting Intellectual Property

Launching and Financing Your Venture

Equity Financing for High Growth

Managing Start-Up Performance/money and People

Pitching the Venture to Investors

Planning Your Exit

Filters